Ros Martin
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Money laundering report

Money laundering report

I am acting in a COP 9 enquiry with full disclosure having been made by the client.  I have a niggling feeling that I need to make a disclosure report under ML legislation too.  Is that right even though the authorities clearly know about the problem?



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14th Jan 2010 13:17

Yes and (maybe) No

Where a money laundering report is required then it is required that you make one (even where HMRC, the police, or other authorities are aware of the matter).  However if you have no information to add to that which is already known to the authorities then your report can be brief.

But it does not by any means follow that because (for example) income has been under-declared and tax, interest and penalties will be payable that a report under MLR 2007 / s330 PoCA 2002 to SOCA / your firm's MLRO is required.

In this case I assume that you suspect (or more than suspect) that someone (presumably your client) has deliberately dishonestly submitted false information about his taxable income to HMRC (via your firm, as it happens).  It follows that he has committed the criminal offence of tax evasion and I assume that you are satisfied that he has 'saved' tax as a consequence.  His possession / use etc of the monies he has 'saved' in this knowingly dishonest way amounts to a money laundering offence (because the monies are proceeds of a crime).

Your suspicion of a money laundering offence triggers an obligation for you to report to your MLRO (and that in turn triggers an obligation on the MLRO to report to SOCA).



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14th Jan 2010 13:24

Of course ...

Many thanks David

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